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EURUSD is moving higher for the last few days but on a very low volume and momentum, which is usually an early signal for a trend change.

This is clearly evident on RSI with bearish divergence. From an Elliott Wave Perspective we can also see a three wave A-B-C rise from 1.2750 which is a structure of corrective price action.

As such, traders must be aware of a bearish reversal especially if we consider a shape of an ending diagonal which is a trend-reversal pattern. An impulsive fall from highs and down to   1.3160 will be a first but strong indication that rally is complete and that EUR is headed lower.

EUR USD Elliott Wave Analysis July 26 2013 technical trading for forex traders